It's not the first time we've heard of such a device. In fact, WSJ reported the same thing almost a year ago, but we have yet to see such a device. This time, the report says Amazon's phone will launch in the second half of 2014.

The report also says Amazon has been showing developers the new phone so they can write apps for it in time for the launch.

The phone will use front-facing cameras to track your eyes and alter the images on the screen accordingly so they appear in 3-D.

Amazon has been making a lot of moves in hardware recently. Last week, it launched the Fire TV, a set-top box that lets you stream video over the Internet. It's very similar to the Apple TV and Roku. It also has its line of Kindle Fire tablets.